Orlando Auto Insurance: Drivers Enjoy Lower Gas Prices

car insurance in Orlando FL

Orlando Auto Insurance: Drivers Enjoy Lower Gas Prices

Gas prices at several Central Florida stations dipped below $2 a gallon this week according to the Orlando Sentinel, as prices fuel prices continue to plummet around the country. According to AAA’s Florida division, the average price of a gallon of regular unleaded is just over $2 in Orlando which is a dramatic $1.39 drop from fuel prices at this time last year. What’s more, Orlando is not an anomaly; in fact these two dollar prices are on par with the average price of gasoline in America right now. Reports indicate the current gas prices are the lowest consumers have seen since 2009.

Crude oil prices are reportedly constant and OPEC leaders have vowed not to cut oil production in the coming months, which experts suggest could result in consumers continuing to pay less every time they fill up. The current market price for a 42 gallon barrel of oil is roughly half of what it was a year ago and even less than the prices from earlier this decade. Experts report that since there has been no major increase in fuel demand, and reserves remain high, it is likely that prices will remain low over the course of the next few months. However, they also project that fuel prices will rise in early spring and into summer as driver demand increases and  refineries halt production to switch to summer fuel blends, but most suggest that the prices will likely stay below $3 in the near future.

However, with gas prices falling, some state and local municipal legislators are calling for increased fuel taxes to compensate for revenue lost due to the waning pump prices. In most states taxes account for between 10 and 15 percent of the retail price of gas. These taxes help fund public work projects such as roadway repairs and transportation management services. Some officials are concerned that as gas prices drop, the amount state and local governments can collect on those purchases also falls, especially when fuel demand stays relatively the same.  It remains to be seen if Florida officials will seek to increase fuel taxes in response to the current gas prices and funding needs.

Regardless, lower gas prices are generally a positive for many Orlando drivers and business owners who feel a little more flexibility in their budgets without the burden of high fuel prices.

Everyone likes to save money, especially on their auto insurance. But as an Orlando motorist, it is important that you are properly insured whenever you hit the roads. Finding the right car insurance in Orlando FL can be tricky when trying to balance affordability with coverage. The Orlando auto insurance experts at Newman Crane can help your secure the coverage you need at prices you can afford. To learn more about our operation and all of our personal insurance solutions, contact us today at (407) 859-3691.